Pursuing Carbon Neutrality in the Automotive Sector: Trends, Proposals, and Challenges

Kyoung You Kim () and Cheul Cho ()
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Kyoung You Kim: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr
Cheul Cho: Korea Institute for Industrial Economics and Trade, Postal: Sejong National Research Complex, Korea Institute for Industrial Economics and Trade, 370 Sicheong Dae-ro C-dong 8-12F 30147, Republic of Korea, http://www.kiet.re.kr

No 21/17, i-KIET Issues and Analysis from Korea Institute for Industrial Economics and Trade

Abstract: Due to the large proportion of emissions which the transportation sector accounts for and the comparative ease with which emissions from this sector can be managed, key countries are tightening emissions regulations in the transportation sector. To this end, various proclamations have been made and many policies have been proposed. Korea has announced robust measures to achieve a carbon-neutral automotive sector by 2050. But carbon neutrality regulations put in place during the transition from ICE vehicles to electric-powered vehicles must consider Korea’s industrial competitiveness and the global market strategies of Korean companies. As Korea’s automotive sector relies heavily on foreign markets, carbon neutral strategies must track international trends. At the same time, the country needs to develop and pursue appropriate strategies that will minimize negative impacts to its domestic industries. This paper explores measures to accelerate growth in the industrial ecosystem of the electric-powered vehicle sector while also supporting a smooth transition to carbon neutrality.

Keywords: automotive industry; auto industry; exports; vehicle exports; carbon neutrality; climate change; emissions; electric vehicles; industrial structure; net zero; environmental policy; industrial policy; industrial strategy; export policy; export strategy; innovation; innovation policy (search for similar items in EconPapers)
JEL-codes: E22 E23 E61 F02 F13 F23 F64 L16 L22 L52 L53 L62 O33 O38 Q52 Q55 Q58 (search for similar items in EconPapers)
Pages: 17 pages
Date: 2021-09-15
New Economics Papers: this item is included in nep-ene, nep-env, nep-int, nep-res and nep-tre
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